Friday, January 21, 2011
The Most Amazing Innovation Story Ever
Steve Job just announced Apple's results for Q4 and 2010. Every CEO would like to announce the results that Jobs was able to boast about. Revenues were up 71% for the year. I don't think that any company, the size of Apple, has had that kind of revenue growth. Apple also forecasted 60% revenue growth for Q1 2011. They are already a $100 billion company and still growing at an amazing rate. Most of the growth came from the Ipad, Iphone, Itouch trio which gives them a huge share of the mobile market. Mac sales were only up 24% but the that is 8 times the 3% growth in the PC market. Moreover, most of the sales went to first time Mac users. There is also a link between the sales of its mobile products and the MAC. Customers who purchase a mobile product tend to purchase a MAC if they want a laptop or desktop.
Apple not only leads the market in product innovation but it has demonstrated leadership in distribution as well. The Apple stores had $46 billion in sales. Its four biggest selling stores are in China. They accounted for $10 billion in sales. Apple's Itunes business had $4 billion in sales. Apple has changed the way customers purchase its hardware products as well as music and other entertainment products.
Apple's results will attract lots of attention. They have captured the highly competitive electronics market by out innovating its competitors in almost every part of the business. They are also establishing a leadership position in the most rapidly growing Asian markets. The only bad news is that their job creation in the US is far short of their growth in revenue. Only 10% of the jobs that they create are in the US.